Top Coffee Producers’ Supply Woes Send Price Volatility Surging
- Coffee futures in New York are set for an 8.8% gain this week
- Dryness in Brazil, blockades in Colombia have fueled the rally
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Prices swings for arabica coffee spiked near the year’s highest levels, spurred by supply uncertainty in top producers Brazil and Colombia and bullish tone across most major commodity markets.
Futures for the beans favored by Starbucks Corp. traded near their priciest in four years and are up for a fifth straight week for longest winning streak since 2019. In addition to a world deficit forecast after a slump in Brazilian production caused by prolonged dryness last year, shipments in Colombia have been disrupted by protests. A strengthening Brazilian real has also spurred gains and frenzy buying across raw materials propelled the Bloomberg Commodity Spot Index to its highest since 2011.